Question

Nature and scope of international financial management wiki

Answer 1

Compared to national financial markets international markets have a different shape and analytics. Proper management of international finances can help the organization in achieving same efficiency and effectiveness in all markets, hence without IFM sustaining in the market can be difficult.

Companies are motivated to invest capital in abroad for the following reasons

Efficiently produce products in foreignmarkets than that domestically.

Obtain the essential raw materials needed for production.

Broaden markets and diversify

Earn higher returns

foreign investment

Answer 2

The “nature and scope” of the financial management is very important in the “Field of business”. Without financial knowledge, it is difficult to start a business or to handle any business.

While starting a business the investment details has to be calculated only by the financial knowledge persons. Financing decision should focus on the accountabilities and in stockholders to be maintained in a balanced manner. The Dividend decision also plays a “major role” in today corporate.